AEW UK Long Lease REIT considering future – The board of AEW UK Long Lease REIT served notice on its manager and announced a strategic review yesterday.
“In view of the sub-scale size of the group, its performance since IPO, and the recent news in respect of Meridian Metal Trading Limited, the board is reviewing the options for the future of AEWL. The board will seek to achieve value for shareholders either by expanding the group’s equity and asset base to achieve full dividend cover, considering offers from interested parties, or by selling the group’s portfolio and returning funds to shareholders.
To ensure that all options can be considered, the board has today served protective notice of termination of the investment management agreement with AEW UK Investment Management LLP (which will expire on 9 April 2020). Ultimately, after all options have been considered, the board may decide to continue to pursue the group’s existing strategy with AEW UK Investment Management LLP.”
[QD comment: This is a dramatic step by the AEWL board. The shares didn’t move much on the back of the news, however. The company denied today that it was in talks with any potential purchaser of the business. One potential merger partner might be LXi, which trades on a 15% premium (according to Morningstar) against AEWL’s 14% discount, has a fairly similar objective and invests in some similar properties.]
The picture is AEW UK Long Lease REIT’s PureGym property in Wandsworth, London
AEWL : AEW UK Long Lease REIT considering future